• Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.

Need Suggestion – Best bank for Education Loan under PM Vidya Lakshmi Yojana

Hope

TF Premier
RML Group
Hi everyone,
My brother has been allotted Maulana Azad National Institute of Technology (MANIT, Bhopal) through JOSAA counselling.
We’re now planning for his education loan under PM Vidya Lakshmi Yojana ( this college falls under eligible institute)

Total 5Y programme (B Arch)fee will be ~7-8L

In PM vidyalakshmi scheme this subsidy is available and annual income is 5L. ( anyone here availed this benefit ? Do bank ask father salary slip/itr ?)
Screenshot_2025-07-17-15-09-04-690_org.cromite.cromite-edit.webp

• interest rates
Sbi :- 7.45% college comes under PMVL- Uttam Screenshot_2025-07-17-15-15-06-262_org.cromite.cromite-edit.webp

PNB:- found nothing i could understand on their website
Union: 7.85-8.05%
Screenshot_2025-07-17-15-20-20-554_org.cromite.cromite-edit.webp

And if anyone have availed education loan any type please guide which bank will be good to go.

I am considering above three banks SBI/UNION/PNB and suggest if any other bank offers better rate.

Thankyou.
 
Last edited:
1752757597456.webp

“PM – Vidyalaxmi” (PMV), is a special Education loan scheme where in collateral-free and guarantor-free loan is provided to students to have secured admission in top 860 QHEI through merit channel.

this line is from vidyalaxmi application portal almost same written on sbi/union "collateral-free and guarantor-free" ss from canara bank. portal have all bank interest rate and loan details.

To in shabdo se kya samjhe ?
 
Last edited:
View attachment 103739

“PM – Vidyalaxmi” (PMV), is a special Education loan scheme where in collateral-free and guarantor-free loan is provided to students to have secured admission in top 860 QHEI through merit channel.

this line is from vidyalaxmi application portal almost same written on sbi/union "collateral-free and guarantor-free" ss from canara bank. portal have all bank interest rate and loan details.

To in shabdo se kya samjhe ?
Collateral free means you are not required to provide any asset or security against securing this loan. Guarantor-free means, no person is needed as a guarantor to apply for loan which otherwise is always needed. A guarantor is a person who gurantees bank that in case the loan-taker aka borrower fails to pay he/she will pay back the bank.

Here repayment lies only with the student who is taking a loan but as a co-borrowers father will need to make payment in case student can't due to whatever reason in future.

Also loans above 7.5L will be provided only when student has life insurance policy. Existing policy will work and in case no policy is there, bank will do one and premium for it will be taken from loan amount.
 
Collateral free means you are not required to provide any asset or security against securing this loan. Guarantor-free means, no person is needed as a guarantor to apply for loan which otherwise is always needed. A guarantor is a person who gurantees bank that in case the loan-taker aka borrower fails to pay he/she will pay back the bank.

Here repayment lies only with the student who is taking a loan but as a co-borrowers father will need to make payment in case student can't due to whatever reason in future.

Also loans above 7.5L will be provided only when student has life insurance policy. Existing policy will work and in case no policy is there, bank will do one and premium for it will be taken from loan amount.
Thanks for clarification.

Btw got fathers form 16 1 apr 24 to 31 mar 2025

gross income is 422263.00
Gross total income (6+8) 347263.00
Total taxable income (9-11) 347263.0

Which will be called actual income 347263 or 422263 ?

Form 16 will work as income proof at bank right ?

Tomorrow will issue govt income proof of same amount or less than 4.5 which will fall under 100% interest subvention.

Sorry if i am disturbing you.
 
Thanks for clarification.

Btw got fathers form 16 1 apr 24 to 31 mar 2025

gross income is 422263.00
Gross total income (6+8) 347263.00
Total taxable income (9-11) 347263.0

Which will be called actual income 347263 or 422263 ?

Form 16 will work as income proof at bank right ?

Tomorrow will issue govt income proof of same amount or less than 4.5 which will fall under 100% interest subvention.

Sorry if i am disturbing you.
Here 422263 is actual income.

75000 standard deduction is available for all salaried people. ITR shows taxable income after deductions.

It is below 4.5L mark.

Yes, for proof of income certificate this figure will show i.e 422263 based on salary slips that needs to be produced. At the same time PAN should not have any other income showing in 26AS and AIS.

I hope this income is inluding any interest income also. If not add interest income from savings and deposits to it manually if not auto-fetched by system.

100% interest subvension is only till Time of Course + 1 Year. After that interest will be charged if not paid fully. Also interest will be charged at simple interest rate from Day 1 but Govt will take care of its payment. Technically there is no interest-free thing here. It's just that Govt will pay bank the interest charges instead of person taking the loan.

Example: Person A is doing course of 4 years. So for 4+1 years no interest will be charged on amount below 4.5L loan. But your loan a/c statement may show interest charges which will be set-off by credit entry from Govt every 6/12 months.

Above that amount i.e >4.5L, interest is charged from Day 1 with 3% off.

Also for courses other than professinal/technical interest will be chared from Day 1 at simple rates for amount above 4.5L.


Repayment will start from 6th year onwards.
 
Back
Top